Cadbury to expand chocolate crumb production in NZ

By Dominique Patton

- Last updated on GMT

Related tags: New zealand, Asia-pacific

Chocolate giant Cadbury will spend NZ$20 million (€10.3m) to expand
production of chocolate crumb in New Zealand, allowing it to meet
forecast growth in demand from the Asia-Pacific region, it
announced yesterday.

The expansion at its factory in Dunedin, New Zealand, will treble output of crumb, which forms the basis of all chocolate. Cadbury also plans to establish a global crumb research and development centre at the site, funded by a NZ$2 million grant from the government. "We've chosen to invest in New Zealand, and in particular, in Dunedin because the plant is already highly efficient, and we have access to quality ingredients, such as fresh milk,"​ said Mark Smith, managing director of Cadbury Schweppes Australia & New Zealand. The factory is currently the largest chocolate manufacturing facility in New Zealand, employing 600 staff. It supplies finished products to the New Zealand and Australian markets, and also exports chocolate crumb to Cadbury factories in Australia, Pakistan and China. When the new crumb facility starts production, expected in October 2007, it will be a leading supplier for Cadbury Schweppes across the Asia Pacific region. Cadbury's Asia-Pacific sales are significantly smaller than its European and US turnover, accounting for 18 per cent of the group's revenue in 2005, but emerging markets have been targeted for growth. According to a spokeswoman, Cadbury currently makes around one third of its total Asia Pacific sales from 'emerging markets', up from just 17 per cent four years ago. In India, it is now the leading chocolate maker, with about 75 per cent market share, and in Thailand, it has won 60 per cent of the gum market in recent months. The group is keen to keep up its growth momentum in the area, where confectionery markets see annual increases of 8 per cent in 2005, compared with barely 5 per cent in developed markets, according to Euromonitor.

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